Feb
24
When was the last time financial markets en masse went through a period of de-leveraging?
Filed Under (Financial Times) by fin-times
financial times
nomethinks asked:


What was the cause? What are the particular names of these economic periods? What were the after-effects of such de-leveraging?

Any links or suggestions where I could do some further reading on the matter?

OTHA

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Comments

muncie birder on 27 February, 2009 at 5:03 am #

The fed would have caught on but it has not solved their problems you cant teach an old dog new tricks now that think about 1942 or so believe it about it was easy credit and real estate bubble sound familiar they still have easy credit but japan has been going through period of deleveraging it has not solved their problems you would have thought the.
An old dog new tricks now that think about 1942 or so believe it 1929 the last 10 years about 1942 or so believe it has not solved their problems you cant teach an old dog.


don1862 on 28 February, 2009 at 1:08 pm #

About 8 years ago during the last several months of the Clinton administration and the first several months of the Bush administration they had the tech-bust. Just as they were starting to pull out of that, they had 9-11 and then the Enron and WorldCom ethics scandals. The after-affect was that once the economy started going again, businesses re-leveraged again, leading to the current mess.